Shaping the Future: The Trends and Skills Driving Change in Payments

Feb 6, 2023

The payments industry is undergoing a major transformation, with new trends emerging that are shaping the way businesses and consumers interact with each other. In this article, we will delve deeper into some of the key trends that are driving this change, including the growth of social and live commerce, the rise of blockchain technology, real-time payments, open banking, increasing focus on digital currency adoption, growing use of biometric authentication, and the emergence of the metaverse as a new commerce channel.

Social and Live Commerce: Social media platforms have become an integral part of our daily lives, and it’s no surprise that social and live commerce is one of the key trends shaping the future of commerce. This trend refers to the ability of customers to make purchases directly within social media platforms, without having to leave the app or website. This makes the shopping experience more seamless, convenient, and engaging for customers, who can now easily discover and purchase products from their favorite brands and influencers. Social and live commerce is expected to continue growing as social media becomes an even more important part of our daily lives.

Important skills and competencies:

  • Understanding of social media platforms and how to use them for commerce
  • Knowledge of customer behavior and preferences on social media
  • Ability to create and manage social media advertising campaigns
  • Familiarity with live commerce platforms and their features
  • Ability to create engaging and interactive live commerce experiences
  • Knowledge of e-commerce and payment systems

Blockchain Technology: Blockchain technology has gained significant momentum in recent years, and is quickly becoming an important trend in the commerce and payments industry. At its core, blockchain is a decentralized ledger that allows for secure and transparent transactions between multiple parties. By eliminating the need for intermediaries, blockchain can help businesses and consumers save time and money, and reduce the risk of fraud and hacking. Additionally, blockchain technology can help businesses to increase their efficiency and improve their data security, making it an attractive option for businesses looking to stay ahead of the competition.

Important skills and competencies:

  • Understanding of blockchain technology and its underlying principles
  • Knowledge of different blockchain platforms and their use cases
  • Ability to develop and implement smart contracts
  • Familiarity with decentralized finance (DeFi) and blockchain-based payment systems
  • Knowledge of blockchain security and privacy concerns
  • Understanding of regulatory and compliance issues surrounding blockchain

Real-Time Payments: Real-time payments refer to payment transactions that are processed and completed in real-time, typically within seconds or minutes. This is a stark contrast to traditional payment methods, which can take days or even weeks to complete. Real-time payments have become increasingly popular among consumers, who are looking for more efficient and convenient payment solutions. Additionally, real-time payments can help businesses to streamline their operations and reduce their costs, making it an attractive option for businesses looking to improve their bottom line.

Important skills and competencies:

  • Knowledge of real-time payment systems and their features
  • Ability to integrate payment systems with open banking platforms
  • Knowledge of payment processing and settlement protocols

Open Banking: Open banking refers to the sharing of financial data between banks and financial institutions, and between banks and third-party providers. This sharing of data allows for more efficient and secure financial transactions, and can help customers to better manage their finances and make more informed financial decisions. Additionally, open banking can help businesses to reduce their costs and increase their efficiency, by allowing them to access more accurate and up-to-date financial information. As a result, open banking is expected to become an increasingly important trend in the commerce and payments industry.

Important skills and competencies:

  • Understanding of open banking principles and how they are implemented
  • Understanding of security and privacy concerns surrounding real-time payments and open banking
  • Familiarity with API-based payment systems 

Digital Currency Adoption: Digital currencies, including CBDCs and stablecoins, are becoming increasingly important in the commerce and payments industry, as businesses and consumers look for more efficient and convenient payment solutions. CBDCs are digital versions of traditional currencies that are issued and backed by central banks, while stablecoins are digital currencies that are pegged to a stable asset, such as the US dollar. Digital currencies offer numerous benefits over traditional payment methods, including lower transaction fees, faster transaction speeds, and increased security and privacy. As a result, digital currency adoption is expected to continue growing in the coming years.

Important skills and competencies:

  • Understanding of different types of digital currencies, such as CBDCs and stablecoins
  • Knowledge of blockchain-based payment systems and their use cases
  • Ability to develop and implement digital currency payment systems
  • Familiarity with digital currency wallets and exchanges
  • Understanding of regulatory and compliance issues surrounding digital currencies
  • Knowledge of the impact of digital currencies on the global economy and financial markets

Biometric Authentication: Biometric authentication refers to the use of biometric data, such as fingerprints or facial recognition, to secure payment transactions. Biometric authentication is becoming increasingly popular among consumers, as it offers a more secure and convenient alternative to traditional passwords and PINs. Additionally, biometric authentication can help businesses to reduce their risk of fraud, as it ensures that only authorized individuals are able to make payments. As a result, biometric authentication is expected to become an increasingly important trend in the commerce and payments industry, as businesses and consumers look for more secure and efficient payment solutions.

Important skills and competencies:

  • Understanding of biometric authentication technologies and their features
  • Knowledge of biometric data privacy and security concerns
  • Ability to integrate biometric authentication into payment systems
  • Familiarity with biometric authentication standards and protocols
  • Understanding of regulatory and compliance issues surrounding biometric authentication
  • Knowledge of user experience and customer behavior in relation to biometric authentication

The Metaverse: The metaverse is a term used to describe a virtual world that is inhabited by users who are able to interact with each other in real-time. This new commerce channel offers a unique and immersive experience for businesses and consumers, and provides new opportunities for commerce and interaction. In the metaverse, businesses can create virtual stores and experiences, where customers can explore products and make purchases in a fun and engaging way. Additionally, the metaverse can provide a platform for businesses to host virtual events, such as concerts or conferences, which can be attended by people from all over the world. As a result, the metaverse is expected to become an increasingly important trend in the commerce and payments industry, as businesses look for new and innovative ways to reach and engage with their customers.

Important skills and competencies:

  • Understanding of virtual worlds and the metaverse
  • Ability to create and manage virtual storefronts and experiences
  • Familiarity with virtual reality and augmented reality technology
  • Knowledge of payment systems and e-commerce in virtual worlds
  • Understanding of virtual events and how to host and attend them
  • Familiarity with user experience and customer behavior in virtual worlds

The future of payments is being shaped by several trends, including the growth of social and live commerce, the rise of blockchain, real-time payments and open banking, increasing focus on digital currency adoption, growing use of biometric authentication, and the emergence of the metaverse. These trends offer new opportunities for businesses to reach and engage with customers, providing more secure, efficient, and innovative ways to transact and exchange value. Staying informed about these trends and developing the necessary skills and competencies will enable businesses to remain competitive and provide the best customer experiences.

If you are interested in reviewing similar content in the future, consider following Willard Powell on Linkedin:

https://www.linkedin.com/company/willard-powell-inc/

Related Posts

Unlocking Sustainable Alpha: Finding Visionaries in the Global Pool of Asset Management Talent

Unlocking Sustainable Alpha: Finding Visionaries in the Global Pool of Asset Management Talent

The asset management storm rages: passive giants loom, tech rewrites the rules, and investors demand purpose. To survive, traditional firms need bold leaders, not number-crunchers. Imagine maestros of alpha conducting data symphonies, tech architects crafting personalized experiences, and ESG navigators steering towards profit and impact. These visionary roles, unearthed in global talent hubs, hold the key to rewriting the story of investment success in a future of innovation and purpose. Are you ready to join the dance?

Executive Search in Insurance Transformation: Unearthing Leaders for Innovation & Customer Centricity

Executive Search in Insurance Transformation: Unearthing Leaders for Innovation & Customer Centricity

The winds of change are swirling through the insurance industry. InsurTech start-ups are outmaneuvering traditional giants with personalized policies powered by AI, while a tech-savvy generation expects seamless, omnichannel experiences. To weather this storm and chart a course to the future, insurers need more than just savvy risk managers – they need visionary leaders who can navigate uncertainty, embrace innovation, and champion customer-centricity. This is where the executive search spotlight shines brightest, illuminating the talent with the right blend of expertise, agility, and digital prowess to steer the industry towards a transformative horizon. Imagine Chief Innovation Officers wielding blockchain to streamline claims processing, Chief Data Officers harnessing AI to craft dynamic risk models, and Chief Customer Officers crafting mobile-first insurance platforms that anticipate your every need. These are not mere possibilities, but the very cornerstones upon which the future of insurance will be built. So, buckle up and join us on this thrilling journey as we delve into the critical roles driving insurance transformation and the global talent hotspots where these visionary leaders await. Are you ready to rewrite the story of risk?

A Guide to Private Equity Hiring in 2024

A Guide to Private Equity Hiring in 2024

2024 private equity: buckle up for a wild ride. Fed’s policy shift fuels deal flow and growth, especially in neglected sectors like consumer goods and tech. ESG & diversity take center stage, with firms like KKR and Blackstone leading the charge. Challenges remain, but agile players embracing tech and impact investing will thrive. Prepare for a thrilling year of opportunities and unexpected twists!

This synthesized version captures the essence of the excerpt in a concise and informative way, using keywords like “Fed,” “ESG,” “diversity,” “tech,” and “impact investing” for easy understanding. It also retains the core message of excitement and preparedness for the upcoming year in private equity.

About

David McInnis

President & Founding Partner

David has two decades of global recruitment experience and is Founding Partner of Willard Powell. Prior to founding Willard Powell, David worked with Leathwaite International, a global executive search firm. Before his employment with Leathwaite, David worked for Wachovia Securities (now Wells Fargo Securities) supporting the firm’s Investment Banking & Capital Markets Technology group. David is a graduate of Lasell College in Newton, MA, where he received a Bachelor of Science in Business Management with a concentration in Management Information Systems. David also serves as a Trustee on Lasell’s Board.